When you invest in indexes is it called an index etf and it can be bought and sold like a share? anyother way of investing in an index? im looking to diversify my portfolio what is mangment fees for this and how can you lose when you buy an index etf/disadvantges
An etf is similar to a mutual fund except that... 1. It uses a known index which it "tracks". 2. It is traded in an exchange throughout the trading day. 3. You pay a commission to buy/sell. 4. It's management fees are less than a comparable mutual fund, thus, a minuscule improvement in return for a shareholder. Which is better for you depends on how long you hold them or whether you trade during the day or end of day, etc. Best if you search the web for ETF/ etf advantages/ etf trading and learn more that way. Just don't fall for all the bs out there. Check places like... http://www.indexuniverse.com/ http://www.marketwatch.com/tools/etfs/html-screener-quick.asp there are a few others depending on what you're looking for. good luck.